ThinkProgress Logo

Health

Yglesias

A Tale Of Two Medicares

It would be difficult and undesirable, though not impossible, to simply take a “do nothing” attitude toward Medicare and pay for it with much higher taxes. But what’s more, as Paul Krugman says even if you do accept the desirability of reducing the projected rate of growth in Medicare expenditures there’s no reason to think its single-payer structure needs to be changed, or even should be changed. The point is best illustrated, as he says, with reference to Canada’s universal single payer health care program which is called “Medicare” and is pretty similar to American Medicare except that non-seniors are eligible for it.

The point about affordability is well-made with this chart from the New England Journal Of Medicine:

Now to be clear, this is from an article expressing skepticism about the Obama administration’s cost-control claims in the Affordable Care Act. But the specific grounds for the skepticism is that the ACA isn’t socialistic enough:

It seems clear to us that the latent cost-control effect in Canada is unlikely to be replicated in the United States, because a unified or universal insurance scheme that would create a national monopoly capable of achieving widespread cost control is not on the horizon. Without a single-payer system, this country may never achieve the cost-control effects enjoyed by other industrialized countries. Instead, every measure that expands coverage for underserved populations may lead only to further cost increases.

That, however, is a political judgment. Even without monopoly insurance provision, the vast majority of health insurance in the United States relies on indirect financing by the federal government. Except for politics—which is obviously a huge “except”—there’s nothing stopping us from squeezing providers, Canada-style, and acquiring cheaper services. Indeed, we could probably be more successful than Canada because Canada needs to worry about doctors decamping from Vancouver to Seattle. American doctors would have noplace to run.

NEWS FLASH

Indiana’s Planned Parenthood Law Could Cost Taxpayers A ‘Quarter Of A Million Dollars’ In Legal Fees | Indiana’s law banning Planned Parenthood from receiving Medicaid funds may cost the state $4 billion in federal Medicaid funds, but the state would also be responsible for paying the legal expenses for anyone who challenges the constitutionality of the measure. Sarah Seward of the Courier Press is reporting that the legal fees alone could “cost Indiana taxpayers a quarter of a million dollars” or more if the ruling is appealed. The state is “obligated to pay not just its own legal fees but the other side’s, too.”

Pawlenty’s Flirtation With Universal Health Care: Supported SCHIP Expansion In 2007

The Washington Examiner’s Phil Klein reports that Republican presidential candidate Tim Pawlenty may have an SCHIP problem:

Back in 2007, the newly-elected Democratic majority was in a pitched battle with the Bush White House over the renewal and expansion of SCHIP. Democrats saw it as a down payment on universal health care, but President Bush eventually vetoed the legislation, which raised tobacco taxes and expanded coverage to children from families with household incomes of up to $82,600.

As chairman of the National Governor’s Association at the time, Pawlenty came out in favor of the renewal and expansion of the law. His public statements at the time show a politician who was trying to thread the needle as governor of a liberal state who had future ambitions within the GOP. Though he endorsed the renewal and expansion, he didn’t say how big of an expansion he supported and didn’t specify the funding mechanism. Nor did he explicitly come out against President Bush’s veto.

Klein speculates that Pawlenty will likely argue that he was presenting the position of the NGA and did not endorse a specific funding mechanism (i.e. the tobacco tax) or any other details about how the expansion should occur.

That may be true, but Pawlenty hasn’t exactly shied away from expanding the government’s role in the health care system. In November of 2006 — at the beginning of his second gubernatorial term — Pawlenty said his administration has been “studying very diligently the Massachusetts model about how that would apply to Minnesota,” suggested expanding the state’s Medicaid program, and pledged to “move in stages” toward “universal coverage.” “Everyone should be in a health plan of some sort…but I think as a goal we should start with covering all kids,” he said.

Conservatives are already taking shots at his health care record. On Thursday, fellow Minnesotan Rep. Michele Bachmann (R) told radio host Laura Ingraham that Pawlenty’s health record “will concern the voters.” “We need to have people who have enough foresight and common sense to know these programs aren’t going to work,”she said.

GOP Hypocrisy On Medicare Sustainability

Paul Krugman on why Medicare is comparatively more expensive than single-payer health programs in other nations:

What is true is that the U.S. Medicare is expensive compared with, say, Canadian Medicare (yes, that’s what they call their system) or the French health care system (which is complicated, but largely single-payer in its essentials); that’s because Medicare American-style is very open-ended, reluctant to say no to paying for medically dubious procedures, and also fails to make use of its pricing power over drugs and other items.

So Medicare will have to start saying no; it will have to provide incentives to move away from fee for service, and so on and so forth. But such changes would not mean a fundamental change in the way Medicare works.

It’s worth pointing out that the lawmakers who oppose the cost-containment measures Krugman describes are more inclined to fear monger and complain about Medicare’s “unsustainability” and increasing costs. So next time you see Republicans arguing that Medicare is going broke and won’t be there for future generations of Americans, recall that they all voted against, demagogued and proposed amendments to significantly limit the application of comparative effectiveness research in Medicare — so that the program is not paying “for medically dubious procedures” — during the health care reform debate and are now leading the charge to repeal the ACA’s Independent Payment Advisory Board (IPAB).

NEWS FLASH

Challenges And Opportunities For Implementing Health Reform In California | Jonathan Cohn writes about his reporting trip to California and that state’s efforts in enacting the Affordable Care Act. California was the first in the nation to implement the exchanges following the passage of the health law and “its forward-thinking private sector” is committed to reform. But the state’s biggest problem is still money and its gloomy fiscal situation could complicate the implementation process.

Switch to Mobile
ThinkProgress Signup Overlay Skip and Continue to ThinkProgress Skip and Continue to ThinkProgress

Sign Up